chinaresourcenetwork.com

Just got into China in the last couple days and Shanghai is looking a lot like Beijing pre-Olympics. Getting ready for the Expo in 2010, and my driver was trying to use GPS to get us to Ningbo today- and the streets change on a monthly basis so technology can’t keep up! I had dinner in a friends apartment last night, and they live a block away from the expo site. Its been great for their property values, and she was saying that overall good locations in the city were up 30% in the last year.

Down in Ningbo real estate is the same - massive building boom and prices are still rising. Something is working….although you still here about material price increases (steel has gone up in the last couple of months) and price wars (major shipping price war since early spring is still going on).

Its anything but stable. Still, in my favorite publication of all time - The China Daily - they are crowing that ex Microsoft China CEO Tang Jun is now moving his money into the “safe” Chinese banks because some of the funds he invested in, in the US, were invested in Maddoff and he lost almost $3 million. They also talk about a lending contraction (which has been going on for a couple years in certain segments).

So - its anyone’s guess right now. Some companies are holding on and looking to take market share. Others are slowly running out of funds and shutting down.

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